State-run China National Offshore Oil Co (CNOOC) announced on Friday that it had signed oil exploration and production concession contracts with Mozambique’s energy ministry and national energy company ENH.
The contracts cover five offshore blocks in Mozambique, spanning a total area of approximately 29,000 square kilometers (11,200 square miles) with water depths ranging from 500 meters to 2,500 meters (1,640 feet to 8,202 feet), according to a company statement.
The initial exploration phase is set for four years, during which five CNOOC subsidiaries will operate the exploration and development phases with independent operator rights and interests. ENH will hold the remaining non-operating interests.
In 2019, CNOOC’s gas and power unit, Singapore Trading and Marketing, signed a 13-year sale and purchase agreement with Mozambique LNG1 Company for liquefied natural gas (LNG) from the Mozambique Area 1 onshore LNG plant.
During an earnings briefing in March, CNOOC stated its intention to focus on increasing reserves and production throughout the year.
